Why China’s disappearing banks are a bad sign

Thomas Hale Oct 4, 2026 – 4.00pm Shanghai | China has reduced the total number of banks by nearly a quarter as part of a drive to strengthen oversight of smaller lenders at a time of slower economic momentum. Regional consolidation within China’s vast state-controlled banking system, which has some $US64 trillion ($92 trillion) in overall assets, comes amid signs of sluggish demand for credit in the world’s second-largest economy. Financial Times Subscribe to gift this article Gift articles to anyone you choose each month when you subscribe. Subscribe now Already a subscriber? Fetching latest articles